Shale Energy Law Blog

EPA Announces Plan to Reduce Methane, VOC Emissions from Oil and Gas Industry

Today the U.S. Environmental Protection Agency (EPA) released a fact sheet outlining the agency’s strategy for reducing emissions of methane and ground level ozone-forming pollutants from the oil and natural gas sector.  Release of the EPA strategy is part of a broad multi-agency initiative by the Obama Administration to curb emissions from the sector.  In March 2014, the White House identified the reduction of methane and other emissions from the sector as a key element of President Obama’s Climate Action Plan, and directed EPA to assess how best to pursue such reductions.  According to EPA’s recently-released fact sheet, emissions of methane (the primary constituent of natural gas) from the sector are “projected to increase by about 25 percent over the next decade if additional steps are not taken to reduce emissions from this rapidly growing industry.”  EPA plans to use both “regulatory” and “voluntary” approaches to avoid this anticipated emissions increase.

Among other actions, EPA plans to “build on” its New Source Performance Standards (NSPS) for the sector, namely NSPS Subpart OOOO, to reduce methane emissions and further restrict emissions of volatile organic compounds (VOCs).  The fact sheet indicates that EPA intends to issue a proposed rule in late summer and a final rule in 2016.  EPA also plans to provide state air permitting agencies with special “guidelines” for controlling VOC emissions from existing oil and gas sources located in ozone nonattainment areas and the Ozone Transport Region, which includes Pennsylvania and New York.  EPA expects to propose these Control Technique Guidelines this summer and issue final guidelines in 2016.

New York Governor Signs Climate Change Preparedness Bill

On September 22, 2014, New York Governor Andrew Cuomo signed into law the “Community Risk and Resiliency Act”, which amends several provisions of the Environmental Conservation Law (ECL) to incorporate consideration of potential climate change impacts, including physical risks due to sea level rise, storm surges and/or flooding, when evaluating projects under a number of existing programs.  The law amends ECL Article 23, also known as New York’s Oil, Gas and Solution Mining Law, in a manner that will prompt the New York State Department of Environmental Conservation (DEC) and applicants for oil and gas well permits to consider the effects of climate change.  One provision within the law requires DEC, in consultation with the Department of State, to prepare guidance on implementing the law’s requirements, including development of “relevant data sets and risk analysis tools and available data predicting the likelihood of future extreme weather events,” by January 1, 2017.  Applications and/or permits received after the adoption of the Department’s guidance must comply with the law.  However, the statute also sets a final effective date of January 1, 2017, indicating that applicants must comply with the law even if the Department has not completed its guidance by that date.

McCarthy Confirmed as Top EPA Administrator After Months of Delay

On July 18, 2013, the full U.S. Senate voted to confirm Gina McCarthy as the next U.S. EPA Administrator.  The Senate voted 59-40 in favor of President Obama’s controversial nominee, after months of delay.  The President formally nominated McCarthy in March 2013.  McCarthy has led EPA’s air office since 2009 and is expected to play a pivotal role in implementing the President’s Climate Action Plan.